Uber Technologies’ revenue growth slowed further in the latest quarter on weakness in its core ride-hailing business. The company reported $2.3B in revenue, up 3.7% year-over-year, but growth decelerated amid rising fuel costs and a tighter supply of drivers. Despite the slowdown, Uber’s $1.5B adjusted EBITDA beat expectations, driven by cost-cutting measures and higher order volumes in food delivery.
Management highlighted ongoing challenges in ride-hailing profitability while expressing confidence in long-term margins. The slowdown reflects broader macro pressures, including inflation and reduced consumer discretionary spending. Uber continues to invest in logistics and freight services to diversify revenue streams beyond ride-hailing.
Analysts note that sustained driver shortages could keep growth constrained in the near term. The company plans to expand dynamic pricing models and driver incentives to stabilize ride volumes. Uber’s stock rose modestly after the earnings release, trading near $78 per share.
The firm remains focused on achieving sustainable profitability across its multi-modal platform.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing